Consumer borrowing in January posts first gain in nearly a year, reflecting rise in auto loans

Consumer borrowing up in January after 11 declines

WASHINGTON — Consumer borrowing broke a record stretch of declines with a small increase in January as a boost in auto loans offset continued weakness in credit card borrowing.

The small gain, the first in nearly a year, could be a signal that Americans are regaining confidence in the economy.

The Federal Reserve reported Friday that consumer borrowing rose by $4.96 billion in January, surprising economists who were looking for borrowing to decline by $4.5 billion. It was the first gain after a record 11 straight declines and it was the largest increase since July 2008.